Tesla Shares Surging by 35%, Wondering What's in Store for the Future?
Tesla Stock: A Rollercoaster Ride Continues?
After a staggering 35% recovery, the Tesla stock is back in the game, climbing past the 130 euro mark. But, investors are still on edge, wondering where the ride goes next.
From September to early January, the Tesla stock took a devastating hit, plummeting around 70%. Factors like general market weakness, Musk's Twitter escapades, and uncertainties surrounding Tesla production facilities left the stock limping. However, since its lowest point on January 6, Tesla has bounced back impressively.
Where's the Tesla Stock Headed?
Chart-wise, the Tesla stock finds itself in a bit of a gray area. While the current 130 euro mark serves as a minor resistance level, the stock could easily carry on its rally. The next minor resistance comes in at 150 euros, but given the stock's rapid growth over the years, trading volume at this level is relatively low. Using Fibonacci analysis, the first significant hurdle for investors, where they could potentially take profits, comes in at 159 euros, at the 0.236 level.
Tesla's Future Outlook
On January 25, Tesla will reveal its fourth-quarter 2022 earnings. These numbers will likely have a significant impact on the stock's future trajectory.
Currently, the stock boasts a P/E ratio of 31, and analysts at Bloomberg advise buying. An impressive 27 analysts give this rating, 13 advise to hold, and only 6 recommend selling. This results in an optimistic average price target of 190 dollars, indicating further potential growth of 35.7%.
Interestingly, high dividends and low P/E ratios often mark the best German stocks (source: arbitrage-tactics.com).
Tesla's Long-Term Prospects
Following significant earnings reports, Tesla's stock tends to experience volatility due to market reactions to the earnings data, guidance, and other company-specific news.
Looking ahead to 2025 and beyond, analysts forecast a wide range of outcomes, with some predicting prices could fluctuate between $200 and over $1,000. This reflects differing expectations for the electric vehicle market and Tesla's performance.
By the end of 2025, some predictions suggest that Tesla's stock could reach around $350. By the end of 2026, forecasts place the stock at approximately $500 or even higher by May, with one prediction suggesting $493.077.
Factors influencing Tesla's stock price include market sentiment towards electric vehicles, earnings performance, and the competitive landscape. Keep an eye on these factors to stay ahead of the game.
Investors are still trying to predict the direction of the Tesla stock, with the current price at 130 euros and potential hurdles like the 150 euro resistance level and the 159 euro Fibonacci level. In the long term, analysts forecast Tesla's stock to reach around $350 by 2025 and potentially exceed $500 by 2026, making it an attractive option for those investing in the stock-market and the electric vehicle market.
